Divorces take a financial and emotional toll that both parties may not anticipate. Efficient asset protection strategies can help mitigate this risk.
This includes identifying separate property—anything from assets brought to the marriage to inheritances. It also involves monitoring joint accounts and avoiding commingling purchases.
Know Your Financial Situation
The divorce process is not only emotionally taxing but also financially. Dividing assets and property can be a lengthy and costly endeavor that requires meticulous documentation.
Whether you live in a community property or an equitable distribution state, the court must determine which assets are marital and separate. When dividing assets, the judge will consider each spouse’s income, the financial needs of each spouse, the value of any particular property, and other factors.
Separate property includes assets you owned before marriage and support acquired through inheritance or gift during the marriage. It is essential to keep any particular property in your name and not blend it with joint accounts or other properties. It would help if you also got any property appraised to understand its total value clearly. This is important for determining any potential alimony or child support payments you may be required to make.
Create a Prenuptial or Postnuptial Agreement
Depending on state law, you may be able to establish separate property and pre-marital assets through a prenuptial or postnuptial agreement. This will keep any purchases you brought into the marriage and anything you acquire during the marriage from being considered marital property in a divorce.
Alternatively, you can also develop a trust to help maintain the character of any separate assets you bring into the marriage. However, you should not move money into a trust before filing for divorce. This could appear as an attempt to hide assets and may backfire in court.
Working with a skilled Tampa divorce lawyer and financial adviser is essential to help you understand your financial situation, clarify which assets belong to you and your spouse, and make copies of all joint accounts. This will help avoid any confusion and potential problems when it comes time to divide up the estate in a divorce. Efficient asset protection strategies are especially critical for business owners, doctors, and other professionals who have built substantial wealth.
Negotiate a Settlement Agreement
Divorce is a complex, time-consuming process that can take an emotional and financial toll on all parties. Luckily, there are legal steps individuals can take to protect their assets during divorce.
Start by compiling as much documentation as possible. This may include bank account statements, tax forms, brokerage firm records, and any other documents related to your finances. Remember that a vindictive spouse can change passwords and lock you out of your information, so it is best to have hard copies.
Identify your separate property, such as inheritance funds or property purchased before marriage. Avoid commingling these with marital funds or property; always keep them in your name.
If you co-own a business with your spouse, getting a fair company valuation from an independent professional is a good idea. This can help you negotiate a more reasonable payout in the event of a divorce. Ideally, you will set up your asset protection strategy well before you get served with divorce papers.
Mediate
Divorce is a complex process that can be emotionally and financially taxing. However, it is possible to protect assets by taking proactive steps before and during the divorce process. These may include entering into a prenuptial or postnuptial agreement, opening separate bank and investment accounts, and moving money to offshore trusts.
Before making any significant financial decisions, it is essential to consult with a divorce attorney. This will ensure that your move is based on sound legal reasoning and won’t compromise your case. Remember to change the beneficiaries on any insurance policies or investments to avoid leaving money to someone you no longer want to share it with.
Additionally, it’s critical to be truthful and upfront with your attorney. Hiding assets or deception can lead to many headaches down the road. Be sure to hire an attorney who you can communicate with and understand, as this will be the key to a smoother divorce experience.
Danny Williams 
